- Ethereum price hit a wall at $245 on Wednesday, cutting short the recovery staged from the beginning of the week.
- ETH/USD bulls must contain the price above $240 to avert possible acute declines and focus on gains towards $280.
Ethereum recovery towards $250 was recently cut short at $245. The price started to narrow down towards $240 again. At the time of writing, ETH/USD is trading at $240.50 amid a sideways trading action. Holding above this level is key to the recovery mission targeting $300 as covered on Thursday. The near term target is to detangle from the bearish grip holding the bulls under $245 and push Ether above $250.
Meanwhile, the prevailing technical picture is drab, further limiting the efforts of the buyers. The RSI is moving closer to the midline as the bearish grip becomes stronger. Support at 50 would give bulls a chance to stabilize before staging another attack at $250 and $260 respectively.
The possible consolidation is emphasized by the MACD as it grinds horizontally at the mean line. There is a minor bullish divergence above the MACD which puts the bulls slightly in control. It is apparent that a break above $250 and $260 would leave the door open for gains eyeing $280 based on improved investor sentiments, confidence and the launch of the Ethereum 2.0 currently in development.
For now, containing the price above $240 should be the buyers’ priority as it would allow them to find balance and shift the attention back to $250 and $260. The 50-day SMA is in the position to offer support in the event losses overpower the support at $240. Other areas of interest in the downside include the trendline (black), $215, $200 and the 200-day SMA.
ETH/USD daily chart
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